January 30, 2011 - Boeing has received a $1.6 billion
contract from the U.S. Navy for low-rate initial
production (LRIP) of the P-8A Poseidon aircraft. The
LRIP 1 contract is for six P-8A aircraft, spares,
logistics and training devices.

?Providing these production aircraft to the Navy fleet
on schedule is our No. 1 goal,? said Chuck Dabundo,
Boeing vice president and P-8 program manager. ?This is
an exciting day for Boeing and the Navy and a testament
to the P-8 team?s hard work and determination.?

"This first production contract represents a significant
commitment by the U.S. Navy to recapitalize its force of
long-range maritime patrol and reconnaissance aircraft," said
Capt. Leon Bacon, P-8A deputy program manager for the Navy.
?Ensuring that this capability arrives on schedule and within
budget remains our primary objective.?

Boeing will begin final assembly of the first LRIP aircraft at
its Renton, Wash.,
facility this summer. The Poseidon team is using a
first-in-industry in-line production process that draws on
Boeing?s Next-Generation 737 production system. All P-8A-unique
aircraft modifications will be made in sequence during
fabrication and assembly.

?The in-line approach we?ve incorporated on this military
derivative aircraft is already paying the dividends we expected
by helping us improve efficiency and reduce costs,? said John
Pricco, Boeing Commercial Airplanes P-8 program manager.

As part of the U.S. Navy System Development and Demonstration
contract awarded to Boeing in 2004, the team is building and
testing six flight-test and two ground-test aircraft. The first
three flight-test planes, T1, T2 and T3, are completing testing
at Naval Air Station
Patuxent River, Md.
The program?s static test plane, S1, recently completed its test
program, which began in May 2009; S2, the fatigue test plane,
will begin testing later this year.

A derivative of the Next-Generation 737-800, the Poseidon is
built by a Boeing-led industry team that includes CFM
International, Northrop Grumman, Raytheon, Spirit
AeroSystems, BAE Systems and GE Aviation.

A unit of The Boeing Company, Boeing Defense, Space &
Security is one of the world's largest defense, space
and security businesses specializing in innovative and
capabilities-driven customer solutions, and the world's
largest and most versatile manufacturer of military
aircraft. Headquartered in St. Louis, Boeing Defense,
Space & Security is a $34 billion business with 68,000
employees worldwide.